H&R Block’s subprime mortgage lending arm has reported a quarterly loss of $676.8 million, dragging down the entire company. In all, all of H&R Block lost $85.5 million in Q1. From BusinessWeek:
The company reported losing $85.5 million, or 26 cents per share, during the February-April period, which is when the nation’s largest tax preparer sees the majority of its revenue. By comparison, the company earned $587.5 million, or $1.79, during the same period a year ago.
H&R Block says it will sell its subprime lending operation to a private equity firm.
Yikes. Other than the subprime lending, H&R Block is doing well. The rest of the company earned $591.2 million. —MEGHANN MARCO